ETC2430 Actuarial cash flow modelling
Faculty of Business and Economics
ETC2430 Actuarial cash flow modelling is a level 2, 6-credit-point, undergraduate unit from the Faculty of Business and Economics, offered in 2025 in Semester 1 at Clayton. It needs ETB1100, FIT1006, ETC1000, SCI1020, ETF1100, STA1010, ETW1001 or ETX1100 and unlocks 6 units, leading on to 8 units in all.
- Credit points
- 6
- Offered in 2025
- Semester 1
- Clayton
- Assessment
- Exam 60%
- and 1 other task
- Workload
- 144 hours
- per semester
This is the 2025 handbook entry. See the 2027 entry.
Reviews
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Requisites
Before ETC2430
Prerequisites
Pass these before you enrol.
- ETB1100Business statisticsNo reviews yet
- FIT1006Business information analysisNo reviews yet
- ETC1000Business and economic statisticsNo reviews yet
- SCI1020Introduction to statistical reasoningNo reviews yet
- ETF1100Business statisticsNo reviews yet
- STA1010Statistical methods for scienceNo reviews yet
- ETW1001Introduction to statistical analysisNo reviews yet
- ETX1100Business statisticsNo reviews yet
After ETC2430
6 units list ETC2430 as a prerequisite or corequisite.
- ETC3430Financial mathematics under uncertaintyNo reviews yet
- ETC3520Foundations of quantitative financeNo reviews yet
- ETC3530Life insurance mathematicsNo reviews yet
- ETC5343Financial mathematics under uncertaintyNo reviews yet
- ETC5352Foundations of quantitative financeNo reviews yet
- ETC5353Life insurance mathematicsNo reviews yet
Enrolment rules
If you are enrolled in course B6014, there is no prerequisite to undertake this unit.
To be successful in this unit, background knowledge and application of maths is required at the equivalent of VCE Year 12 Higher level. You may have satisfied this by completing relevant prerequisite unit/s, or you have covered relevant topics in your final years of secondary study. You should self-assess your maths competency prior to enrolling in this unit.
Overview
This unit will introduce you to basic financial and stochastic techniques used in actuarial work, and will give an overview of some of the areas in which actuaries are currently involved. You will be introduced to the basic concepts involved in interest rates and time value of money, leading to assessing and pricing future risks and pricing insurance products, using past data.
Offerings in 2025
| Teaching period | Campus | Mode |
|---|---|---|
| First semester | Clayton | Blended |
Assessment
- Within semester assessment40%
- Examination60%
Learning outcomes
When you finish this unit, you should be able to:
- 1
understand the time value of money and associated concepts of interest, discount and inflation rates
- 2
calculate present value and discounted value of cash-flow streams at different dates and different frequencies
- 3
apply the techniques in the valuation of financial transactions with deterministic cash-flows, such as annuities, and for project appraisal
- 4
develop extensions using life tables for the valuation of basic life insurance policies with stochastic cash-flows.
Workload and teaching
- Seminars24 hours
- Tutorials12 hours
- Workshops12 hours
- Teaching approachProblem-based learning
- Teaching approachActive learning
Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.
This unit includes problem-based learning approaches, where you engage in research, integrate theory and practice and apply knowledge and skills to develop viable solutions in response to a problem or set of problems.
This unit engages you in actively applying your knowledge, skills and attributes in interactive, collaborative and reflective activities.
Learning resources
Technology resources
There may be an additional cost associated with purchasing a physical and/or virtual calculator. Specific details will be provided in the Learning Management System by commencement of Orientation week.
Where it fits
ETC2430 is part of 2 areas of study in the 2025 handbook.
Contacts
- Chief Examiners
- Liyuan Lin
Common questions
What are the prerequisites for ETC2430?
You need ETB1100, FIT1006, ETC1000, SCI1020, ETF1100, STA1010, ETW1001 or ETX1100 before you enrol. Enrolment rules also apply.
What can I take after ETC2430?
ETC2430 is a prerequisite or corequisite for 6 units, including ETC3430, ETC3520, ETC3530, ETC5343, ETC5352 and ETC5353. Those lead on to 8 units in all.
When is ETC2430 offered?
In 2025, ETC2430 runs in Semester 1 at Clayton.
How much work is ETC2430?
The handbook expects about 144 hours of study across the semester. No students have rated its difficulty yet.
Does ETC2430 have an exam?
Yes. The exam is worth 60% of the final mark, alongside 1 other task.
Which majors and minors include ETC2430?
ETC2430 is part of Actuarial studies.